Jaipur: Developers pay stamp duty while purchasing land and on the execution of the development agreement. Again, the buyers are required to pay stamp duty while buying houses, said developers in a meeting with the principal secretary (finance) Akhil Arora.
Dhirendra Madan, president of Credai-Rajasthan said that the stamp duty and registration fees are being charged twice for the land creating an unnecessary burden on the investors and buyers.
Madan said in the feedback for a budget meeting, they suggested the finance secretary restrain the cascading effect of double stamp duty and registration charges and input credit should be granted to the buyer or investor in the same way as it is done in the GST mechanism.
A similar case is in the joint development agreement where a land owner enters into a tie-up with the builder. The land owner and the developer pay 1% and 2% stamp duty respectively above the 1% registration charge.
Madan said in this case too the right of the land and the development is transferred to the buyer.
“Here too, there is an extra burden on the developer which is passed on to the buyer. We suggested the government give a resolution on stamp duty including registration charges of 0.5% which would help the development of the real estate sector.”
The real estate body has also pursued the attention of the government for encouraging green buildings in the state. States like Kerala are offering the exemption of 1% stamp duty on green buildings certified by the Indian Green Building Council (IGBC). Also, Kerala has reduced property tax by up to 20% for such buildings.
“The state government should grant rebate in stamp duty for green buildings and self-sustainable residential projects to encourage the interest of the investors and developers,” said Madan.
In recent, the state government provided industry benefits to the tourism sector. Real estate developers also want such a policy for the real estate sector.
Developers cited the example of the Telangana government’s multiple benefits for real estate like 100% stamp duty reimbursement, land cost rebate of 25%, 15% investment subsidy, and 1% exemption in power tariffs. Madan said developers in the state should get rebates on land costs and conversion charges.
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